Dividends
No dividends have been declared or are payable for the year ended 30 June 2024.
Net Tangible Asset Information
*Derived by dividing the net assets less intangible assets attributable to equity holders of the Company by the total ordinary shares at 30 June 2024 (553,139,337) and 30 June 2023 (446,346,595) respectively.
Please note that throughout the financial year the company has increased its intangible assets by $2.1m and increased its intangible liabilities (deferred revenue) by $2.6m, both of which are subtracted in calculating the Net tangible assets.
Commentary and results for the year
Delivering on Strategy and Outperforming Expectations
XRG's achievements in FY24, particularly in validating and expanding the Operator XR software products, underscore a pivotal year of strategic execution and market penetration. The company not only met but also surpassed its strategic milestones, demonstrating effective growth management and the appeal of its innovative solutions in global markets. This success has set a strong precedent for continued growth and innovation throughout FY2025 and beyond.
Enterprise Sector
Throughout FY2024, xReality Group Limited made substantial strides in expanding its customer base for the Operator XR platform. The year saw a marked increase in new customers, particularly in the U.S. and Australian markets.
The company is using 3 key indicators to track its success in the new sector; Total Contract Value (TCV), Annual Recurring Revenue (ARR) and total customers world-wide.
For FY2024 our TCV was $4.1m, an increase of 193% on FY23 (FY23 $1.4m). The ARR grew by 505% from $365k to $2.21m, and by the end of the financial year we had 29 customers around the world including Law Enforcement agencies, Military Units, Education and Training agencies and other government agencies.
Key Markets Penetration
The two key markets of focus have been Australia and the United States. Sales efforts have been concentrated on these markets.
In the first half of the year, the company focused on expanding its U.S. operations. Initial market engagement involved trade shows and selective customer interactions, leading to the establishment of a permanent Sales team and Operations unit and securing its first law enforcement client in Colorado. This early foundation paved the way for an extremely successful second half of the year where the company added a further 24 customers in the US across law enforcement and training organisations.
The success in North America has also carried through to the Australian market, with a major contract awarded by a state government agency in late June with a TCV of $810k (signed 3rd July). This State Government sale and a further Australian military sale valued at $317k ended the financial year contributing significant ARR into FY25 and beyond.
Other Global Opportunities
In parallel with the direct sales strategy in Australia and the US, Operator XR has now established a distributor network in S/E Asia and Europe through partnership agreements to market, deliver, and support Operator XR products and software into those regions. These arrangements are expected to commence to deliver sales in FY25.
Click here for the full ASX Release
This article includes content from xReality Group, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Serving the lucrative law enforcement market in the US, xReality Group’s Operator XR offers a unique value proposition that leverages a $3.37 billion global addressable market. If xReality Group’s impressive sales performance in the US to date is any indication, the company is definitely one to watch for investors.
xReality Group Limited (ASX:XRG) specializes in virtual reality (VR), augmented reality (AR) and physical simulation for the enterprise, defense and consumer markets. The company’s primary focus is to provide physical and digital simulations for military and law enforcement applications. XR stands for extended reality and is a catch-all term for VR, AR, and mixed reality (MR).
The company was co-founded by two Australian military veterans to build physical skydiving simulators for both military training and the tourist market. The company has since expanded its simulation portfolio from indoor skydiving to include out-of-home virtual reality entertainment, defense XR training, and XR software development. xReality targets both the entertainment and the enterprise markets, which include defense, law enforcement, and other government agencies.
The company was listed on the ASX on January 18, 2013, as Indoor Skydive Australia Group (ASX:IDZ) and was rebranded to xReality Group on December 8, 2021.
It operates four major brands, and the group’s portfolio companies include XR production company Red Cartel, Operator XR, two Australian indoor skydiving facilities, and FREAK Virtual Reality venues.
The global total addressable market for the Operator XR business in the law enforcement and military markets is valued at about $3.37 billion in annual recurring revenue (ARR). Of this, the United States accounts for $1.3 billion, or 40 percent of the total, while the rest of the world is $2 billion. xReality has rightly been focusing on increasing its presence in the US given its relatively high share in the global context.
The global military market is significantly higher than the law enforcement market. Overall, the military market is valued at $2.68 billion, and the law enforcement market is valued at $682.6 million. Here again, the US is a significant player accounting for the largest share of the global pie in both military and law enforcement.
Operator XR focuses on the enterprise segment, more specifically the defense and law enforcement sectors. Operator XR systems help military personnel and law enforcement officers train in operational tactics and procedures within a virtual reality environment. The VR system complements the existing training methods and helps its users to train more often, covering a broad range of scenarios centered on de-escalation tactics, use of force decision-making, and operational procedures.
The system was developed from the ground up, using the latest innovations in VR technology, with all IP owned by xReality. The company has invested a total of AU$2.5 million in the ongoing development of the Operator XR product. Operator XR offers several benefits: First, it provides a software platform that can be easily updated and configured. It offers significant cost savings and can simulate threats that cannot be replicated by other means. Second, it helps create the virtual environment at a fraction of the cost and time. Third, it creates an immersive environment allowing the use of live weapons and equipment leading to greater preparedness. Lastly, it can work offline enabling the training anytime and anywhere.
With offices in Sydney and Virginia, the segment focuses on two main markets – Australia and the US. The Australian operations were launched in 2021, followed by the US in 2023. With a go-to-market strategy focused on the ‘tier 3’ segment of the US law enforcement market, xReality made its first US law enforcement sale in August 2023. Tier 3 market includes nearly 3,000 police agencies with 40 to 500 officers.
As of May 2024, Operator XR has a year-to-date total contract value of $2.67 million, and an annual recurring revenue of $1.27 million. xReality now has existing contracts with a number of police departments in the US, including Oregon, Maryland, Alaska, Texas, Florida, Ohio, Arkansas, Indiana, and a training organisation based in California.
Operator XR is also making headway in Australia, with a recent purchase order from the Australian Defence Force for the delivery of two systems with a 3-year licence.
Further expansion efforts also include XReality Group’s partnership with a key technology partner in Mexico for the distribution of Operator XR’s VR technology for law enforcement and military markets.
xReality operates indoor skydiving facilities under the brands – iFly Downunder (located in Sydney) and iFly Gold Coast (located in Queensland). During FY 2023, xReality invested significantly in enhancing both iFly Downunder and iFly Gold Coast, resulting in upgrades to mechanical cooling systems, IT hardware and building works. This segment serves both the entertainment and enterprise markets. The first indoor skydiving tunnel was launched in 2014.
Since then, xReality has been serving about 200,000 visitors annually. iFly provides a steady, stable revenue cash flow, essential to fund the growth side of the business.
Freak Entertainment is xReality’s virtual reality entertainment brand, established in 2019 to bring a market-leading VR experience to a retail footprint. The brand and IP are 100 percent owned by xReality, which includes cutting-edge technology and in-house-built games. It has served nearly 300,000 customers across its five locations in New South Wales and Queensland. Freak Entertainment venues offer various entertainment options such as VR arcade games, VR Escape Rooms, and VR Laser Tag among others.
Red Cartel develops software products that cater to both the entertainment and enterprise markets. A leading expert in developing AR, VR, XR and enterprise software for the entertainment, oil and gas, healthcare, mining and government sectors, Red Cartel has more than 20 years of market track record. xReality acquired Red Cartel in August 2021 to deliver in-house development capability and support its other three businesses.
John Diddams holds a bachelor’s degree in commerce from the University of NSW, is a fellow of the Australian Society of CPAs, and is a fellow of the Australian Institute of Company Directors. He has more than 40 years of financial and management experience in Australia and overseas, with rich experience in the practical application of ASX listing rules, Australian corporations’ law, international accounting standards, and corporate governance principles. Diddams has a strong track record in driving business performance, mergers and acquisitions, due diligence and corporate governance.
Wayne Jones has been the company's founder and CEO since November 2011. Before establishing xReality, he was a Commander with the Special Air Service Regiment (SASR) and was responsible for the development and performance of teams in complex and challenging environments. He holds formal qualifications in project management, business, security, and risk management, and financial management, and is a member of the Australian Institute of Company Directors. He has more than 25 years of experience in leading teams and delivering results. He is an experienced skydiver and maintains his involvement with the Australian Defense Force. He is also the president of the Australian Special Air Service Association (NSW Branch).
Danny Hogan joined the Australian Regular Army in 1991 and, in 1997 was selected for further service within the Special Air Service Regiment. He has been recognized and awarded for his actions and leadership during his 21-year military career, including the Medal for Gallantry. He was selected for and completed a two-year military exchange in the US with two of the country’s elite Special Forces Commands. Hogan was a highly qualified senior dive instructor within the Special Air Service Regiment. He served as an executive director and the chief operations officer of xReality from the foundation of the company until November 2019, at which time he became a non-executive director. He is a member of the Australian Institute of Company Directors.
Kim Hopwood has more than 20 years of experience across technology, media, management, and operations. He started his career as a network engineer at Cisco, then co-founded digital agency Pusher in 2004. He has worked with xReality since 2012 as a supplier, and then as a freelance consultant before joining full-time in 2019. In his role as chief technology and products officer, he is responsible for all products along with the development of company strategy.
Mark Smethurst is an accomplished senior executive leader, with a highly successful track record commanding large and diverse teams both in Australia and overseas. He is a former Australian Military Brigadier General and has rich experience in dealing with Australian and international defense and supply chains. He was head of preparedness, and director of General Joint Force Analysis, responsible for developing futures concepts, experimentation, lessons, and preparedness.
Philip Copeland is an experienced senior leader in the enterprise software-as-a-service (SaaS) sector and has a highly successful track record scaling enterprise SaaS businesses into global markets across highly regulated industries including government and financial services. He was the former CEO and founder of Avoka Software, a digital business enablement platform. He is the chairman of xReality’s International Growth Committee.
Stephen Tofler was appointed CFO and company secretary in February 2019. He has more than 20 years of experience as a CFO in financial services, manufacturing and in public practice. He is formally qualified as a CPA, maintains a CPA Public Practice Certificate, and has a Bachelor of Business degree.
E-Power Resources Inc. (CSE: EPR) ("E-Power" or the "Company") is pleased to report additional results from the 2024 exploration program on the Company's flagship Tetepisca flake graphite property located in the North Shore region of Québec.
Highlights include:
James Cross, President and CEO of E-Power commented: The early stage exploration work completed during the 2024 exploration season has clearly demonstrated the graphite potential of our northern claims. The second phase of prospecting has extended extended mineralized trends coincident with conductors derived from airborne surveys and has discovered new zones. We anticipate implementing an aggressive program in 2025 to follow up and advance these discoveries and demonstrate the large tonnage potential of the property. Work on our advanced targets on the southern claims has returned Cg grades consistent with, and above, the district average Cg resource grade and graphite concentrates grades up to 96.5% Cg.
Early Stage Exploration
Early stage exploration completed during the 2024 exploration season was focused on evaluating selected conductors and conductor trends on the northern part of the property derived from interpretation of the Company's airborne electromagnetic survey completed in 2022. Exploration during Phase 1 of the program resulted in the discovery of high grade graphitic metasedimentary rocks coincident with 3 conductor trends (see news release dated August 1, 2024). Geological and geophysical prospecting completed during Phase 2 of the early stage exploration program successfully extended mineralized trends and discovered additional graphite mineralization coincident with previously untested targets, Forty-four samples were taken during Phase 2, 38 of which returned analyses greater than 1% Cg, 22 returned values greater than 5% Cg, and 13 samples returned Cg values greater than 15%. The location of the 2024 early stage exploration area is indicated in Map 1 and the results are presented in Map 2.
Map 1: Tetepisca Graphite District VTEM Conductivity Map
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Advanced Exploration and Evaluation
E-Power has prioritized 3 graphite showings located on the southern part of the Tetepisca property for advanced exploration and evaluation. During the 2024 campaign a total of 1,037 kilograms (1.037 tonnes) comprising four bulk samples from three graphite showings (2 samples taken from the Graphi West target area) were collected (locations of showings indicated on Map 1). Field duplicates, consisting of 2 to 3 kg taken from each of the bulk sample excavation sites, returned Cg values that are consistent with and above the average resource Cg grade in the Tetepisca district (approximately 14% Cg). The results are presented in the table below. Work in progress on these samples includes mineralogy studies utilizing reflected and transmitted light petrography and a Scanning Electron Microscope and metallurgical test work. Preliminary mineralogy results document the common occurrence of large to jumbo size graphite flakes which are free of inclusions. Results of metallurgical test work include Graphite concentrate grades of 96.5 % from the Syndicate showing and 96.4% from the Captain Cosmos showing.
Map 2: North Tetepisca Target Area
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Table 1: Cg Results from Advanced targets and comparison with historical results
| Graphite Showing (sample) | Historical Result | Field Duplicate | |
| Sample Wt. | C Graphitic | ||
| C % | kg | % | |
| Captain Cosmos | 29.07 | 2.46 | 30.00 |
| Syndicate | 12.00 | 2.44 | 13.20 |
| Graphi West A | 19.80 | 2.56 | 17.55 |
| Graphi West B | not previously sampled | 2.48 | 16.65 |
About the Tetepisca Property
The Tetepisca Property is located approximately 220 km north of the town of Baie-Comeau in the North Shore Region of Québec. The property consists of 230 claims covering an area of approximately 12,620 hectares within the emerging Tetepisca Graphite District ("TGD"). The TGD is an active graphite exploration and development district with delineated measured and indicated resources in excess of 120 Mt at an average grade of approximately 14% Cg. The Company's Tetepisca property is strategically located over continuous bedrock conductive horizons that are known and interpreted to be due to graphite and which hold significant potential to host flake graphite resources. The intersection of graphite in our 2023 drilling and the results of our 2024 exploration program to date confirms the Company's exploration model and provides the basis for continued exploration and evaluation.
Qualified Person
Jamie Lavigne, P. Geo, Vice President Exploration and Director for E-Power is a Qualified Person as defined in NI 43-101 and has reviewed and approved the technical information in this press release.
About E-Power
E-Power Resources Inc. is a Québec Corporation based in Montréal and focused on battery minerals exploration in Québec. The Company is currently advancing two projects; the Tetepisca property, located in the North Shore region of the Province and the Turgeon property located in the Abitibi region adjacent to the Ontario border. The Company's priority target is flake graphite on the Tetepsica Property. The Turgeon property is located in the prolific Abitibi gold and base metal mining district and the Company is evaluating Turgeon primarily for its copper-zinc and gold potential.
For more information about E-Power Resources Inc. please visit the Company website at: e-powerresources.com
Notice Regarding Forward-Looking Statements:
This news release contains "forward-looking statements". Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that they will prove to be accurate.
For information contact: James Cross, CEO, Tel: (438) 701-3736, info@e-powerresources.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/225869
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Sona Nanotech Inc. (CSE: SONA) (OTCQB: SNANF) (the "Company" or "Sona") is pleased to announce that it has closed its non-brokered private placement that was announced on September 5, 2024 with the issuance of 6,575,000 common shares (each, a "Share") at $0.25 per share (the "Financing") for gross proceeds of $1,643,750. One Insider of Sona subscribed for 400,000 of those common shares for gross proceeds of $100,000. The subscription to the Financing by one insider of the Issuer is a related party transaction for the purposes of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Issuer is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that the fair market value of the insider's subscription does not exceed 25% of the market capitalization of the Issuer as determined in accordance with MI 61-101. This Financing, together with Sona's financing that closed on September 5, 2024, totals gross proceeds of $3,143,750.
As previously disclosed, Sona intends to use the net proceeds of the Financing for advancing studies to support regulatory permission for an international, multi-site, first-in-human clinical trial, further research and development of its Targeted Hyperthermia TherapyTM ("THT"), as well as for general working capital purposes.
Numus Capital Corp. (the "Finder"), a registered Exempt Market Dealer, acted as exclusive finder for the Financing. In connection with the private placement, Sona paid the Finder a cash commission of $91,813 and issued 367,250 non-transferable share purchase warrants (the "Finder Warrants"). Each Finder Warrant entitles the Finder to acquire one Share at an exercise price of $0.25 until September 23, 2026. The Finder is a related party to Sona, a director of Sona being indirectly a principal shareholder of the Finder, as well such director of Sona also being a director and officer of the Finder.
All securities issued pursuant to the Financing will be subject to a hold period until January 24, 2025.
Contact:
David Regan, CEO
+1-902-536-1932
david@sonanano.com
About Sona Nanotech Inc.
Sona Nanotech, a nanotechnology life sciences company, is developing Targeted Hyperthermia™, a photothermal cancer therapy, which uses therapeutic heat to treat solid cancer tumors. The heat is delivered to tumors by infrared light that is absorbed by Sona's gold nanorods in the tumor and re-emitted as heat. Therapeutic heat (41-48°C) stimulates the immune system, shrinks tumors, inactivates cancer stem cells, and increases tumor perfusion - thus enabling drugs to reach all tumor compartments more effectively. Targeted Hyperthermia promises to be safe, effective, minimally invasive, competitive in cost, and a valuable adjunct to drug therapy and other cancer treatments.
Sona has developed multiple proprietary methods for the manufacture of gold nanoparticles which it uses for the development of both cancer therapies and diagnostic testing platforms. Sona Nanotech's gold nanorod particles are cetyltrimethylammonium ("CTAB") free, eliminating the toxicity risks associated with the use of other gold nanorod technologies in medical applications. It is expected that Sona's gold nanotechnologies may be adapted for use in applications, as a safe and effective delivery system for multiple medical treatments, subject to the approval of various regulatory boards, including Health Canada and the FDA.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This press release includes certain "forward-looking statements" under applicable Canadian securities legislation, including statements regarding the anticipated applications and potential opportunities of Targeted Hyperthermia Therapy, Sona's preclinical and clinical study plans, future patent filings, regulatory submissions and approvals, and its product development plans. Forward-looking statements are necessarily based upon a number of assumptions or estimates that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements, including the risk that Sona may not be able to successfully obtain sufficient clinical and other data to submit regulatory submissions, raise sufficient additional capital, secure patents or develop the envisioned therapy, and the risk that THT may not prove to have the benefits currently anticipated. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Sona disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Not for distribution to United States newswire services or for dissemination in the United States.
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